Daily Energy Report
Crude Oil Futures for April 2020 settled up $3.23 @ $34.36/bbl trading in a $4.80 range including the overnight-RBOB settled up 2.02/cpg and Heating Oil settled down 8.70/cpg. According to leading market advisors, the OPEC and Russia oil price war clearly started this weekend when-after no agreement was made-Saudi Arabia cut the relative price at which it sells its crude by the most in at least 20 years. Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above 10 million/bpd, according to a published report. The Kingdom currently pumps 9.7 million/bpd, but has the capacity to ramp up to 12.5 million/bpd. Russian Energy Minister Alexander Novak told reporters, “As from 1 April we are starting to work without minding the quotas or reductions which were in place earlier”.
Natural Gas Futures for April 2020 settled up $0.158 @ $1.936/mmbtu trading in a .161 cent range including the overnight session.
NYMEX traded natural gas futures dropped to their lowest level since March 4th, 2016 @ $1.610/mmbtu, on Monday as they seemingly followed the plunge in global energy prices. Domestic crude oil futures lost a third of their value-in the biggest single day plunge since the 1991 Gulf War-after Saudi Arabia signaled it would increase output to lift its market share even though the Coronavirus has already left the market oversupplied. Technicians note, the multi-year low @ 1.610/mmbtu was met with a 0.200 mmbtu rally- thus creating an “outside day up” on huge volume, possibly signaling a change of direction.